Q4 2022 Atlanta Office Market Report

The Atlanta office market experienced some highs and lows in the final quarter of 2022. Vacancy ended Q4 at 18.5%, a 50 basis point decrease from the previous quarter. Net absorption, while not as robust as quarters past, was in the positive thanks to major tenant move-ins from Emory Healthcare (112,000 SF) and Novelis (89,553 SF) in the Northlake and Buckhead submarkets. However, as developers pushed forward with new groundbreakings at 4.6M SF actively under construction at the end of Q4, a nearly 1M SF increase from Q3, leasing activity was at a 10-year low at 1.8M SF leased for Q4. Increasing interest rates and macroeconomic concerns placed downward pressure on investment sales activity, as Atlanta’s Q4 total volume was significantly lower compared to past quarters. The Atlanta office market will be closely watched in 2023 as companies decide to expand, consolidate or completely vacate their office footprints, potentially leading to an increase of sublease inventory and rising vacancy.